The Daily Mail and General Trust, owner of the Daily Mail newspaper, are in talks to buy Yahoo.
A spokesperson confirmed that the discussions were “at a very early stage”.
The spokesman for Daily Mail said: “Given the success of DailyMail.com and Elite Daily we have been in discussions with a number of parties who are potential bidders.
“Discussions are at a very early stage and there is no certainty that any transaction will take place.”
The news comes as Yahoo said it is set to cut 15% of its workforce as part of its efforts to make a profit.
Richard Dunbar, of Aberdeen Asset Management, told the BBC: “[Yahoo] has struggled against Facebook and Google. Its sales have halved over the past 10 years. In contrast Mail Online has been unbelievably successful – the most visited English language news website in the world.
“It will be interesting to see whether the terms of this deal are acceptable to what have been long suffering shareholders at Yahoo.”